The Study On World Economy Virtualization And China's Economic Security

The global financial crisis triggered by Subprime mortgage crisis has caused that the global economic is slowing, many countries have suffered serious losses, including China. Profound analysis of the reasons for the international financial crisis has not only theoretical significance, but also has important practical significance. Therefore, this article tries to use Karl Marx's theory of the fictitious capital to analyze the mechanism of the global financial crisis evolved from Subprime mortgage crisis and build VAR model to carry out empirical analysis of the impact on the economic security for the crisis.In chapterⅢ, Firstly, we elaborated the production of fictitious capital from the angle of the credit system and income capitalization, its unique movement mechanism and accumulation mechanisms. Generated from business credit, the draft's circulation can replace the circulation of money and perform the functions of capital, so it is purely fictitious capital, and through the bank's credit system a lot of derivative deposit is created, they are only just the numbers on the book ,but they also could carry out the functions of capital , therefore, they are purely fictitious capital, bonds, stocks are also fictitious capital. Fictitious capital has its own unique movement mechanism and accumulation mechanisms. Nominal value of fictitious capital movements can be completely independent of the reality capital which they represent, on the one hand the nominal value of fictitious capital depends on cash flow which it could bring in the future and its reliability, on the other hand, the fictitious capital has the inherent speculative nature. The accumulation of fictitious capital is also very different from the accumulation of reality capital, people can make use of the credit system and the technical means to create a large number of fictitious capital in the short term, the accumulation of fictitious capital could be completely unrelated to social expansion reproduction. Then, we analyze the trend of virtualization of the world economy, its performance and impact and the development status of fictitious economy in our country.In chapterⅣ, Firstly, we analyze the reason of the international financial crisis, its direct cause is the over virtual of economy, fictitious capital's scale is much greater than the real economy could bear, inverted triangle of the economic structure is extremely unstable, a small crisis in the real economy could lead to the collapse of fictitious economic. Through the wealth effect, Tobin's Q effect and the financial accelerator mechanism consumer spending, business investment spending declined, leading to the real economy recession. In the era of globalization, the crisis of the United States in fictitious economy and the recession of its real economy inevitably spread to other countries, triggering a global financial crisis and economic recession. Finally, we build the VAR model and carry out the empirical analysis of the impact on the economic security for the crisis, The empirical analysis found a positive standardized impact to LNEX will also bring in the same direction impact to LNGDP . After a shock to LNEX, LNGDP slowly began to grow and reached the maximum12% at the period six, then gradually decreased and ultimately trend to be stable. Through the variance decomposition found 42%'s volatility of GDP are bring about by the export fluctuations, and the remained are by other factors, the impact that export fluctuations on the GDP is extremely significant. Finally, we are from three aspects of financial institutions, capital flows and capital markets to analyze the impact of the international financial crisis on China's financial security.The chapterⅤbased on the analysis of Chapter IV is proposed measures must be taken for our economic stability, sustainable and healthy development, and reduce the impact on our economy caused by external shocks and maintain our economic security. It's to say we must achieve the change of export-led economic growth mode to domestic demand-led economic growth mode, by adjusting the industrial structure in China, improve the social security system, reform income distribution system, to eliminate polarization to promote domestic consumption, domestic consumption play a decisive role in economic growth and harmonious development of society, it is stable, unlike the external demand, vulnerable to the impact of the international economic environment. At the same time, we must also grasp the financial reform initiative to eliminate "Latin American" risk, standardize the development of medium and small financial institutions to optimize financial structure, and gradually establish a scientific mechanism for fiscal and financial risk isolation to protect our financial security.